Motives, money and microfinance ? Are we measuring the right subsidy variable?

In the next ten years, society will spend $20 billion U.S. on Microfinance Institutions (MFIs). Previous research on the impact of subsidies suggests that there is little if any consensus on an effective method to measure the impact of subsidies with considerable doubt existing that a financial variable is the most appropriate method. Findings suggest that in order for the impact of subsidies to be fully reconciled, some consideration must be given to the initial objectives and underlying motives of MFIs and subsidy providers as this has an intrinsic bearing on any result they are attempting to achieve. I have attempted to shed light on a significant failure of the microfinance movement to date, in that we still have not clearly articulated by what qualitative measure we are to determine the success of MFI?s. Identifying what is the priority issue, even if it is a combination of factors requires willingness on behalf of both pro and anti- subsidy lobbies to concede that their approach may not be the most important. In order to transcend this discord a retrospective approach is taken to the impact of subsidies, whereby they are analysed from an initial substantive view in regard to underlying motive. I use this framework to assess microfinance in general and then apply my findings to a policy framework for microfinance institutions (MFIs) and subsidy providers.